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APG or SGSOY: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Business - Services sector have probably already heard of APi (APG - Free Report) and SGS SA (SGSOY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, APi has a Zacks Rank of #2 (Buy), while SGS SA has a Zacks Rank of #4 (Sell). This means that APG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

APG currently has a forward P/E ratio of 11.10, while SGSOY has a forward P/E of 22.96. We also note that APG has a PEG ratio of 0.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SGSOY currently has a PEG ratio of 3.13.

Another notable valuation metric for APG is its P/B ratio of 1.55. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SGSOY has a P/B of 12.95.

These are just a few of the metrics contributing to APG's Value grade of A and SGSOY's Value grade of C.

APG stands above SGSOY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that APG is the superior value option right now.


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